Opting out of the child tax credit

3 reasons why you might want to before Aug. 2,

Katie Teague

July 17, 2021

www.cnet.com

Three reasons to opt out of monthly child tax credit payments

Here are some reasons why unenrolling from the advance payment program may be a good idea:

You'd rather have one large payment next year instead of seven smaller payments spanning 2021 and 2022. This could be the case for families saving up for a big expense or those who've budgeted for that money to pay off outstanding debt.
You know your household circumstances or tax situation will change (or has already changed) this year and don't want to deal with having to update your information in the portal. This could be the case for divorced parents who alternate custody of a child.
You're concerned the IRS might send you an overpayment based on old tax information, and you don't want to worry about paying that money back. That could be the case if your household income goes up or if a dependent ages out of an age bracket before the end of 2021.

The IRS ruling on 401(k) company matches that will change the way Americans apply contributions

Christy Bieber

October 30, 2024

The IRS has made a ruling allowing employees at one company to designate a portion of their 401(k) match to student debt repayments or health reimbursement accounts, in addition to traditional 401(k) contributions. This flexibility could become more widespread, potentially allowing employees to prioritize financial goals outside of retirement. The benefits include alleviating financial concerns, reducing debt, and increasing employee recruitment and retention. However, there are also potential downsides, such as losing the power of compounding and potentially prioritizing debt repayment over retirement savings. Employees should carefully consider their financial goals and priorities before diverting funds away from retirement savings. The median retirement savings for households near retirement age is already low, and diverting funds could exacerbate this issue.

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Opting out of the child tax credit

3 reasons why you might want to before Aug. 2,

https://www.cnet.com

Three reasons to opt out of monthly child tax credit payments

The IRS ruling on 401(k) company matches that will change the way Americans apply contributions